Let the hive mind of Engadget get that for you.
"I need help! I want a small pocket camcorder but I'm not sure which one to get. I don't want to fall into the hype of the Flip because I worry two hours won't be enough. What should I be looking for when considering a small camcorder and where can I get a good quality one with expandable memory? Thanks!"
@ Mike #1.
Microsoft have said again and again, the HD DVD drive will be used for Video Playback only. Just Google "HD DVD 360 Movies Only" and you'll see what I mean.
And the drive will be connected to the 360 via a USB cable.